Muscat: The Sultanate of Oman and the People’s Democratic Republic of Algeria have maintained stable relations, characterized by a shared consensus on various regional and international issues.
The bilateral relationship is distinguished by robust collaboration between the public and private sectors across a broad spectrum of sectors, including energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transport, logistics, food security, and desert agriculture.
In a continuation of their commitment to strengthening commercial and economic ties, His Majesty Sultan Haitham bin Tarik of Oman and Algerian President Abdelmadjid Tebboune have announced the commencement of a three-day state visit by the Algerian delegation to Oman, scheduled for Monday, 28 October 2024.
It is anticipated that during this visit, discussions will focus on enhancing cooperation in investment, energy, and mining sectors, with the aim of unveiling significant opportunities, including the potential for joint projects.
The foundation of a deep-rooted relationship between Oman and Algeria can be traced back to the visit of the late Sultan Qaboos bin Said to Algeria in 1973, which significantly contributed to the strengthening of ties. These ties were further solidified by the visit of late Algerian President Chadli Benjedid to Oman in 1990.
In a demonstration of mutual respect, Algerian Prime Minister Abdelaziz Ben Djerad paid his respects to the late Sultan Qaboos bin Said upon his passing in January 2020.
Furthermore, the establishment of a joint committee by the governments of Oman and Algeria on 23 February 1991 is poised to play an increasingly significant role in fostering bilateral cooperation, particularly in the areas of energy, renewable energy, mining, industry, petrochemicals, pharmaceutical production, transport, logistics, food security, desert agriculture, food processing industries, fertilizers, information technology, and tourism.
During a meeting held in Algeria in June 2024, it was agreed upon that the two nations would collaborate on the preparation of a joint vision for the establishment of an investment fund to operate across various sectors.
At the conclusion of the 8th session of the Joint Committee, a symposium was organized for Omani business individuals and their Algerian counterparts. This event, hosted by the Oman Investment Authority (OIA) and featuring participation from Omani CEOs and representatives of “Invest Oman Lounge,” included B2B meetings aimed at exploring opportunities for joint projects. Recommendations were approved, and there was a commitment to follow through on their implementation.
By the end of 2023, the volume of trade between the Sultanate of Oman and the People’s Democratic Republic of Algeria had reached approximately OMR41 million.
This graph illustrates a commendable degree of trade collaboration among Arab nations in North Africa, serving as a catalyst for further expansion and partnership across various economic sectors.
Between July 1, 2024, and the conclusion of the month, Oman's total exports to Algeria reached (OMR37,348,252), with Oman's imports from Algeria during the same period amounting to (OMR509,272), and the value of re-exports to Algeria stood at (OMR375,063).
A multitude of joint ventures underscore the economic cooperation between the two nations, exemplified by the collaboration between the Algerian National Hydrocarbons Company (Sonatrach) and the Bahwan Group. This partnership, focused on ammonia and urea production in Arzew city, Oran Province, with investments totaling approximately USD 3 billion, with Bahwan Group contributing 51 percent of the total investment.
This initiative is regarded as pivotal in the economic partnership between Oman and Algeria, showcasing the commitment of both countries to enhance cooperation in the industrial and energy sectors.
Furthermore, entities such as “Abraaj” and “OQ” are actively pursuing investment opportunities in Algeria's energy sector.
The Sultanate of Oman and the People’s Democratic Republic of Algeria are eager to strengthen trade and economic ties, including exploring investment opportunities in energy and mining, as well as the pharmaceutical industries. This is particularly relevant given the significant development observed in Algeria's pharmaceutical sector, which has evolved from meeting only 15 to 20 percent of its pharmaceutical needs to now satisfying approximately 80 percent of its requirements, positioning it as a key exporter of advanced medicines, including insulin. This sector presents a promising avenue for cooperation between Oman and Algeria, with Oman benefiting from Algerian expertise in pharmaceutical industry development and the expansion of export markets.
In the agricultural domain, the potential for growth in desert farming in Algeria is notable, with 3 million hectares designated for agricultural development over the long term, with the current project targeting the cultivation of one million hectares.
Agricultural products cultivated in the Algerian desert are distinguished by their superior quality. Regarding fertilizers, which are considered a strategic asset for the Algerian economy, the country exports significant quantities of these products to African nations. Furthermore, Algeria is undertaking a major initiative to produce phosphate, positioning it as one of the world's leading phosphate producers, with an annual output potentially reaching 1.5 million tonnes.
In the realm of renewable energy, which stands as a promising area for collaboration between the two nations, Algeria has recently initiated several major projects in this domain in partnership with the European Union. This collaboration facilitates the exchange of expertise and technologies in the development of renewable energy projects, including solar and wind energy, and the exploration of joint investment opportunities in this critical sector, which is recognized as a pivotal solution for addressing sustainable energy needs. On the cultural and scientific front, Algeria has extended an invitation for the first time this year to offer 10 PhD scholarships and 25 Bachelor’s scholarships to students from Oman. Concurrently, the Omani Programme for Cultural and Scientific Cooperation provides three study seats for Algerian students. Efforts are underway to expand the Omani program, aiming to allocate 10 seats to Algerian students.
The Algerian community residing in the Sultanate of Oman is estimated to number around 2,469 individuals by mid-2024, with approximately 400 members being engineers and technicians employed in the oil and energy sectors.
Saif Nasser Al Badaai, the Ambassador of Oman to Algeria, remarked, "The relations between Oman and Algeria are deeply rooted, characterized by shared political visions and coordination on both Arab and international issues. This visit, marking the first of its kind, is being heralded as a 'historic visit,' which is expected to fortify bilateral relations in the future and broaden opportunities, in alignment with the directives of His Majesty Sultan Haitham bin Tarik and President Abdelmadjid Tebboune, who are committed to advancing the bilateral partnership."
He informed the Oman News Agency (ONA) that this visit is poised to enhance bilateral relations between the two nations, benefiting their respective populations.
The Ambassador further elaborated that since the inception of diplomatic ties in the early 1970s, there has been a steady progression in their relationship, culminating in the establishment of a joint committee between the Sultanate of Oman and the People’s Democratic Republic of Algeria.
He detailed that this committee convened eight sessions, with the most recent one taking place in the capital of Algeria last June.
The Ambassador mentioned that negotiations are underway to establish a Hyundai manufacturing facility in Algeria. This initiative aims to produce lines for vehicle body manufacturing and painting operations. The project is slated to introduce three passenger car models, two utility vehicle models, and one electric car model in its initial stages.
He also highlighted that as of the end of 2023, a total of 423 Omani-registered companies have participated in Algerian ventures, an increase from 251 in the previous year, representing a growth rate of 68.5 percent.
Saif Nasser Al Badaai, the Ambassador of the Sultanate of Oman to the People’s Democratic Republic of Algeria, concluded his remarks by emphasizing the importance of culture in the Omani vision. He expressed a strong desire to establish Oman's presence within Algerian cultural institutions and spaces, including the Grand Mosque of Algiers, which now boasts a special section dedicated to Omani culture, inaugurated this year. Additionally, he mentioned the recent contribution of valuable books to the mosque and the aspiration to place the Omani Encyclopedia in the library of the Algerian Supreme Council for the Arabic Language this year.
